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Unformatted text preview: ch6 1. The cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals, is called an organization's strategy. True False 2. Planning involves formulation of strategy but not the implementation. True False 3. The last step in the planning process is to determine the organization's mission and goals. True False 4. A broad statement of the organization's purpose, products, and customers is called a mission statement. True False 5. Planning takes place at the corporate level and the business level of the organization, but not at the functional level of the organization. True False 6. The divisions of the organization exist at the business level of the organization. True False 7. The corporate-level plan of an organization contains the decisions about the organization's mission, goals, strategy, and structure. True False 8. At the functional level, the business-level plan provides the framework within which functional managers devise their plans. True False 9. Functional goals and strategies need not be consistent with divisional goals and strategies. True False 10. In a typical organization, corporate-level planning is the primary responsibility of first-line supervisors. True False 11. In a typical organization, top managers are primarily responsible for planning that takes place at the business level of the organization. True False 12. The number of months covered in the typical business plan is known as the time horizon of the plan. True False 13. A business plan that is updated every year depending on the changes in the organization and in the external environment that have taken place in the previous year is known as a rolling plan. True False 14. Standing plans are useful in situations that involve programmed decisions. True False 15. A general guide to action within an organization is called an SOP of the organization. True False 16. A written set of instructions that describes the series of actions that a manager should take in a specific situation is called an SOP of the organization. True False 17. Single-use plans are intended to be used primarily in programmed decision-making situations. True False 18. Organizational goals should be both challenging and realistic. True False 19. Strategy formulation begins with managers systematically analyzing the factors or forces inside an organization and outside in the global environment that affect the organization's ability to meet its goals now and in the future. True False 20. While conducting a SWOT analysis, the strengths and weaknesses are considered the external environment factors affecting the organization....
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- Winter '07